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Territoires palestiniens, homme, bidon, énergie, Andrea&Magda
© AFD
As a solution to promote green investments in the private sector, the French Development Agency proposes its SUNREF program. Thanks to a credit line and a European Union grant, SUNREF will contribute to improving the economic context for the development of green investments.
Context

This project is implemented in a context of economic fragility and energy constraint as the demand for energy keeps growing. Palestine’s energy dependency towards Israel and its exposure to climate change make it urgent to mainstream new ways of producing and consuming energy and to build renewable energy capacities.

In order to meet the demand and support a steady economic growth, Palestine is in need of reliable, low-cost and sustainable energy sources.

Description

The project is built on 3 axes co-financed by AFD (€ 25 million) and the European Union (€ 8 million): 

  • A credit facility for 2 partner banks (€ 25 million)

This credit line will enable the banks to grant loans to project developers (companies or and/or individuals) willing to invest in the sector of renewable energies and energy efficiency.

  • Investment premiums (€ 5 million)

€ 5 million euros will be allocated to the payment of investment premiums for project developers. Their amount will vary from 15% to 30% of the total loan. The objective of such a mechanism is to incentivize these investments boost the sector.

  • Technical Assistance (€ 3 million)

The technical assistance is set up for 4 years by PENRA (acting as project owner) and an external consultant and aims at facilitating the identification and assessment of projects as well as strengthening the capacities of the different stakeholders.
 

Impacts
  • Promote energy efficiency measures and the use of renewable energies in the private sector and the retail segment
  • Support the role of the private sector in structuring and financing green projects
  • Strengthen the capacity of PENRA
Download the project sheet

This project is carried out with the support of the European Union
20/07/2017
Project start date
20/07/2021
Project end date
4 ans
Duration of funding
Energy,
Employment
Sectors
Palestinian Territories
Location
Loan
Financing tool
33 000 000
EUR
Financing amount
Ongoing
Status
Palestinian Energy and Natural Resources Authority (PENRA)
Cairo Amman Bank, Bank of Palestine
Beneficiaries
European Union
Co-financiers

The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.